- FCC shutdown halts telecom equipment approvals, delaying work for vendors like Nokia, Ericsson and Proscend
- Wireless infrastructure buildouts and mid-range phone certifications face disruption and increased costs
- Longer shutdowns could create broader ripple effects, though major contracts are likely safe for now
The government shutdown could delay the approval of telecom equipment by the FCC, which could affect vendors from Nokia to Proscend.
Many of these companies depend on using FCC databases that are currently shut down and will be until the government sputters back into life. These are used in approving antennas, cellphones and other telecom equipment.
Let's run down some of the sectors that could be affected.
Antennas and telecom equipment
Many telecom equipment vendors could be impacted by the end of FCC work during the government shutdown. These include big names like Ericsson and Nokia and smaller manufacturers like Abracon, Proscend Communications and RFcell Technologies. Wireless Infrastructure Association members depend on databases and systems maintained by the federal government that will be either unavailable or extremely limited in functionality during the shutdown, A WIA spokesperson told Fierce .
"The FCC’s Antenna Structure Registration system is used by our members multiple times a day to submit and modify filings for towers and other sites. As a regulated industry... [these] processes for day-to-day business that are going dark and will lead to delays in operations and deployments, and ultimately increase costs for companies, customers, and consumers," noted the spokesperson.
“The shutdown will also halt the good progress the federal government is making on removing barriers to building out high-speed wireless infrastructure and implementing a spectrum pipeline to connect more Americans," the spokesperson said. "For example, the FCC adopted a new proceeding on improving wireless siting only yesterday, but the comment cycle and eventual final rules will almost certainly be delayed due to the shutdown."
Cellphones
Because Apple, Google and Samsung have all just released their flagship models for the year, expect no changes on that front. Unless the shutdown goes on for an insanely long time — taking more than the 35 days the last shutdown lasted — the big smartphone vendors are unlikely to be in trouble for next year's models.
Makers of more affordable and mid-range phones, like BLU and Motorola Mobility, which launch multiple products a year, could face a tougher time. It generally takes eight to 12 weeks to certify a phone, but all of that is shut down for now.
"[Vendors] could be affected by the shutdown of FCC certifications of devices," noted New Street Research (NSR) policy advisor Blair Levin.
Unpredictable
NSR's Blair Levin noted that the shutdown shouldn't affect the major tech vendor government contracts as long as it doesn't last too long."I don't know how long this one will run but even if it is two months, I doubt it would make sense as an economic matter to cancel the contract and then restart it," he told Fierce.
Dell, Microsoft and AT&T are among the top tech vendors for the federal government now. Levin noted that it is all somewhat incalculable how the shutdown will work out right now. "DOGE was supposed to result in efficiencies and savings, and is likely to result in increased costs and greater inefficiencies. So it is a little unpredictable how it will play out," Levin said.